SEATTLE—Washington state’s efforts to increase the number of electric vehicles on its roads took a significant step forward Aug. 1 with the launch of a financing program for low-income residents.
The Washington State Instant Rebate program, first unveiled in April, prioritizes lower-cost electric vehicle leases and is the first of its kind in the country, Washington Gov. Jay Inslee said at an event here.
Under the incentive program, residents earning up to $45,180 per year for a single person or $93,600 for a family of four would be eligible to receive up to $9,000 toward a new EV lease of three years or more, or up to $5,000 toward new EV purchases or leases of two years.
Used electric vehicles qualify for a $2,500 purchase and lease discount.
Only EVs with a sticker price under $90,000 are eligible. A variety of models were on display, including offerings from Hyundai, Volkswagen, Acura, Polestar and Kia.
About 37 percent of Washington residents would meet eligibility requirements for the program.
The Washington State Department of Commerce said there is $45 million in funding available through the state’s general fund. It expects to cover 7,500 to 9,000 rebates.
“We know the cost of EVs is falling very quickly, but we don’t want to wait,” Inslee said. “We want as many Washingtonians as possible, regardless of their economic circumstances, to be able to experience the thrill of owning an EV.”
Inslee is a longtime electric vehicle advocate who owns a Chevrolet Bolt for home use and often rides in the Washington State Patrol’s Rivian R1S or Mustang Mach-E electric vehicles.
Mike Fong, director of the Washington State Department of Commerce, said the department’s research found that interest in electric vehicles is very similar among higher- and lower-income households and individuals.
“But the number one barrier cited is cost,” Fong said. Leasing, which typically requires less money upfront, could level the playing field and allow “EV adoption to really spread across the state,” he said.
A Washington State Department of Commerce analysis of lease deals advertised nationally found that buyers using the $9,000 down payment would have monthly payments of less than $200 for at least seven electric vehicles.
EVs had an average transaction price of $57,584 in the first quarter, excluding the federal tax credit, down $8,600 compared with the first quarter of 2022 and before the Inflation Reduction Act, according to data from J.D. Power. The average transaction price includes traditional automotive brands and Tesla.
The average lease transaction price fell $5,900 to $33,553.
Electric vehicle registrations in the U.S. rose 7.9% to 471,473 in the first five months of this year compared with the same period a year earlier, according to the latest data from S&P Global Mobility.
‘Challenging player’
Washingtonians can get the instant rebate through franchised dealerships, direct sales with manufacturers like Tesla and used-vehicle-only retailers. More than 205 dealerships have signed up for the program, according to Steven Hershkowitz, managing director of the Washington State Department of Commerce’s clean transportation unit.
Seattle trader Jim Walen called the program “a game changer.”
“We’re talking about very, very low payments,” said Walen. He owns a Hyundai dealership, a Jeep store and a Chrysler-Dodge-Ram dealership.
The Hyundai Ioniq 5, Ioniq 6 and Kona EV are eligible for the program, Walen said.
“Hyundai in particular can take full advantage of this program, and we look forward to serving a large number of people,” Walen told Automotive News.
The program is an important step toward making the EV transition equitable for rideshare drivers, said Kathryn Jensen, a field representative for the Drivers Union. The association is made up of app-based transportation drivers on platforms like Uber and Lyft.
“While efforts toward equitable access to electric vehicles and charging must continue throughout the transition, the instant electric vehicle rebate program launched today is an exciting opportunity for Washington rideshare drivers looking for their next vehicle,” Jensen said.
Rideshare drivers could represent a significant portion of consumers using the program, Walen estimated.
In February, Inslee unveiled plans for $85 million in grants to fund nearly 5,000 EV chargers across the state, in both rural and urban areas. The funds are going to nonprofits, electric utilities, Native American tribes and public agencies.
“We’re trying to get this done as quickly as possible,” he said of the new chargers.